Securing a strong yield in rental income is the strategy of many property investors.

Strengthening this further doesn’t always have to rely on market conditions improving. Here are some tips:

Replace Appliances – replacing the tired old oven or stove or adding a new dishwasher always adds to the appeal of a property.

Adding security – ensuring that doors and windows have good key locks, and even adding a security alarm provides peace of mind and sense of wellbeing and safety. Renters can also receive a discount on their renter contents insurance if the dwelling has better security. This just adds to its appeal.

Refreshing the Property – adding a new coat of paint to the walls and woodwork, replacing tired or damaged flooring or making other improvements can increase the appeal of the home and can also increase its demand and rental asking price. Don’t forget your tax depreciation benefits when renovating. Speak with your accountant on this one.

Add Storage Space – Renters love storage space, especially when they don’t need to bring it. Installing built-in robes and cupboards that use space in a smart way and adding shelves in bedrooms or in the garage will make the home more attractive. Is there space under a staircase that can become storage space? Be creative!

Bullet-Proof the Garden – let’s face it, renters in general don’t like gardening. Therefore, a low-to-no maintenance garden will be attractive. Can the small lawn area be replaced by synthetic turf? Can gravel, stones or other landscaping material that looks attractive replace lawns and gardens? Can the watering systems be automated? Renters really do value convenience.

Street Appeal – prospective renters do judge a book by its cover so it makes sense to make sure that the cover looks great. Do the letterbox or fences need new paint or even replacing? Does the garden need a facelift? This doesn’t have to cost a lot to look great!

It is natural for property investors and property managers to be wary of allowing pets into a rental property based upon a prior experience or concerns over what could happen.

Should we decide to allow a pet in the rental property, some firm guidelines should be placed at the start of the tenancy and written as additional terms of the tenancy agreement so there is firm understanding and agreement as to the consent that we have granted.

Firstly, when we check the renter’s references, additional particulars should be sought as to whether the pet created a disturbance, nuisance or damage during a previous tenancy.

Renter must also inform us the breed, size and number of pets that are to be considered as part of the tenancy.

Although difficult to police, clear guidelines will be sought and made whether the pet will remain outdoors at all times or whether the renter will be allowed to bring the pet indoors.

If we decide to allow a pet into our rental property, we will set guidelines such as the above, in addition to terms such as the renter fumigating the property internally and externally and steam-cleaning the carpets at the end of the tenancy. Restriction of the number and type of pets should be written into the agreement.

Our experience has shown that by making it clear at the start of the tenancy that consent is granted upon the terms set out in the tenancy agreement it is possible to have a harmonious pet friendly tenancy.

Have you ever answered a call from your Property Manager or Renter with “How much this time? What’s next?”

You’re not alone!

Imagine the renter’s side… “Another call to report another thing broken down!” That may not be the case for your property but this is how some renters feel.

We encourage you to be proactive with maintenance. Between tenancies is the perfect time. Have a tradesperson inspect your property to repair and report on what may need fixing in the future. A friendly call to your renter to see if there is something you can do, instead of them phoning can make a big difference. A little forward planning can help alleviate stress of another call and keep your renters happy.

Naturally we can assist with any of these tasks, so please let us know should you want us to contract a tradesperson to give you a detailed report of what might need repairing and renovating.

Now is the time to check the extent of insurance cover that you have on your investment property. Does your policy include building, contents, strata (in the case of a unit), legal liability, loss of rent and malicious damage?

It is wise to insure your investment in the event of a natural disaster, storm damage, defaulting renter or fire. Most investment unit owners are under the impression that the owners corporation insures their unit. This is not the case!

The body corporate insurance extends to common areas only, therefore you should insure all contents such as paint, window coverings and light fittings.

We highly recommend to purchase renter provider contents & public liability insurance as a separate policy to the Owners Corporation insurance cover. Renter Provider contents insurance includes carpets, curtains, blinds, light fittings and electrical appliances not actually wired into your apartments & any furniture you may provide.

The policy also provides legal liability protection for any third party property which may occur at your apartment & for which you may be legally responsible. Loss of rent through the Strata cover is available only if there is an insurable event and hence do not rely on the loss of rent within the Owners Corporation policy.

As your managing agent we can assist you in sourcing a renter provider insurance policy that suits your needs. For a modest premium, renter provider insurance cover gives you peace of mind that your investment property is adequately insured.

When it comes to property management, it is good to have the right understanding and expectation. Here are some common areas that can cause conflict and upset with property owners and investors:

General ‘Wear and Tear’- Understand that every person who rents your property will live differently to you. ‘Wear and Tear’ is the allowance of some ‘bumps and scratches’ to paintwork, woodwork and other items. We also must be aware of the lifespan given to several key items in the property. For example, carpets are seen to have a 10 year lifespan, requiring replacement after this time. Paintwork is given 5 years and so on. If these items are damaged, the age of the item is taken into account at the time the damage occurs.

The Rent Arrears Process – we believe in a zero tolerance approach to unpaid rent! Tough, early intervention is the key to ensure that rent arrears do not get out of hand. However, every now and then, despite all our best efforts a renter may for whatever reason not pay and the situation is headed for eviction. In most of these cases, the outstanding rent & associated expenses, is greater than the bond amount and Renter Providers can incur substantial financial loss. For this reason, we strongly urge renter providers to be covered by quality renter provider insurance (speak to your property manager for more details).

Repairs and Maintenance – everything that is provided as part of the tenancy, whether inside or outside, on the grounds or in a shed, should be provided in good working order. If one of these items breaks down, it must be repaired within a reasonable time frame. If it cannot be repaired, it must be replaced quickly. By acting quickly, you are saving yourself from drawn out and expensive court proceedings, should a renter have a case against you.

To minimise the time to get repairs/replacements, we do recommend a limit be authorised to allow us to get the repair sorted as soon as possible. Only contacting you if the likely expense exceeds your written limit authority.

These factors allow you, as the property owner and investor to have the right expectations from the start, helping you to enjoy your valuable property investment more!